GBP/USD Price Analysis: Rises to 1.2700 nearing 14-day EMA

GBP/USD extends gains to test 14-day EMA at 1.2704 level.
A broadening bottom pattern on a daily chart suggests a potential correction before moving lower.
The lower boundary of the broadening bottom pattern around the level of 1.2640 could act as a key support.

Akhtar Faruqui FXStreet

GBP/USD extends gains for the second successive session, trading around 1.2700 during Asian hours on Tuesday. Analysis of the daily chart shows a broadening bottom pattern in price action, representing increasing volatility. This chart pattern suggests a potential correction before moving lower.

The 14-day Relative Strength Index (RSI) is positioned below the 50 level, indicating a bearish bias. Furthermore, the Moving Average Convergence Divergence (MACD) momentum indicator also suggests a downward trend, as the MACD line is above the centerline but diverges below the signal line. Breaking below the centerline may strengthen the downward trend.

To the downside, the GBP/USD pair may find key support at the bottom wedge of the broadening bottom pattern around the level of 1.2640. A break below this level could exert pressure on the pair to navigate the vicinity of the throwback support at 1.2450.

In terms of resistance, the immediate barrier appears at the 14-day Exponential Moving Average (EMA) at the 1.2704 level. A breakthrough above this level could propel the GBP/USD pair toward testing the top wedge of the broadening bottom pattern around 1.2900.

GBP/USD: Daily Chart

GBP/USD

Overview
Today last price	1.2692
Today Daily Change	0.0007
Today Daily Change %	0.06
Today daily open	1.2685

Trends
Daily SMA20	1.2733
Daily SMA50	1.2629
Daily SMA100	1.2641
Daily SMA200	1.2558

Levels
Previous Daily High	1.2698
Previous Daily Low	1.2633
Previous Weekly High	1.274
Previous Weekly Low	1.2623
Previous Monthly High	1.2801
Previous Monthly Low	1.2446
Daily Fibonacci 38.2%	1.2673
Daily Fibonacci 61.8%	1.2658
Daily Pivot Point S1	1.2646
Daily Pivot Point S2	1.2607
Daily Pivot Point S3	1.2581
Daily Pivot Point R1	1.2711
Daily Pivot Point R2	1.2737
Daily Pivot Point R3	1.2776

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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